4 chapters across the catalog
The $20 billion escrow fund promised by BP for Gulf Coast damages is reportedly being funded through letters of credit from non-American banks like HSBC rather than direct cash transfers. Additionally, Congress voted to end the moratorium on offshore drilling, a move the hosts claim benefits BP by squeezing out smaller competitors who could not afford the 90-day delay. They also note that the original moratorium was based on allegedly falsified scientific testimony.
BP Tax Liability Reduction, GAAP Accounting Benefits
BP's establishment of a $20 billion escrow fund for spill damages is revealed to be a significant tax advantage for the company. Under Generally Accepted Accounting Principles (GAAP), BP can expense the entire $20 billion in a single year, potentially reducing their US tax liability by $7 billion. This effectively results in a massive government-subsidized tax break for the corporation.
BP Escrow Account, Kenneth Feinberg and Jamie Gorelick
The $20 billion fund established by BP is identified as an escrow account rather than a traditional fund, suggesting the terms of payout may be hidden from the public. Kenneth Feinberg, who managed the 9/11 Victims Compensation Fund, is appointed to oversee the payouts, while Jamie Gorelick, a former 9/11 Commission member, serves as BP's lead attorney. The hosts suggest this "cabal" is using the 9/11 playbook to limit BP's liability and prevent future lawsuits.
Obama Weekly Address and GM Loan Repayment Claims
President Obama claimed in his weekly address that General Motors (GM) repaid its government loans five years ahead of schedule. However, an SEC filing reveals that GM used money from a Treasury escrow account—essentially TARP funds—to pay back the original TARP loan. The hosts criticize the President's performance and characterize the announcement as a deceptive "misdirection" by the Ministry of Truth.
